Kincora Copper Ltd announced Tuesday its plans to raise up to USD 6 million to fund drilling at five independent and large-scale targets in the Southern Gobi (Umnugobi) copper belt in Mongolia, where it is undertaking the first modern systematic exploration program at the Bronze Fox and East Tsagaan Suvarga projects.

Proceeds from the latest financing will support up to 18,000 metres of drilling and advance an early stage pipeline and exploration strategy, Kincora said in a statement.

Under the terms of the private placement, each unit is priced at $0.10, comprising of one share and one warrant that allows the holder to acquire a further share at a price of $0.25 during a two-year period following the closing date.

Kincora also announced that its largest shareholder, LIM Asia Special Situations Master Fund Limited (LASSMF) will subscribe for a 28% share of the offering.

The Vancouver-based company plans to spend $2.2 million at Bronze Fox, where it is planning to drill up to 8,100 metres. A portion of the funds will also go towards a mining license application, according to Kincora. At the East Tsagaan Suvarga project, Kincora will spend up to $1.3 million on Phase 2 drilling of up to 6,200 metres.

The junior exploration company will also spend up to US$1 million on project generation for up to 4,000 metres of drilling and around $600,000 for early stage project pipeline exploration work. (Mining Journal)